Organized crime
Organized crime is a category of , national, or local groupings of highly centralized enterprises run by who intend to engage in illegal activity, most commonly for . Some criminal organizations, such as s, are politically motivated. Sometimes criminal organizations force people to do business with them, such as when a gang extorts money from shopkeepers for " ". s may become disciplined enough to be considered organized. A criminal organization or gang can also be referred to as a mafia, mob, ring, or syndicate; the network, subculture and community of criminals may be referred to as the underworld. European sociologists (e.g. ) define the mafia as a type of organized crime group that specializes in the supply of extra-legal protection and quasi law enforcement. Gambetta's classic work on the Sicilian Mafia generates an economic study of the mafia, which exerts great influence on studies of the Russian Mafia, the Chinese Mafia, Hong Kong Triads and the Japanese Yakuza. Other organizations—including states, churches, militaries, police forces, and corporations—may sometimes use organized-crime methods to conduct their activities, but their s derive from their status as formal social . There is a tendency to distinguish organized crime from other forms of crime, such as , , s, , s, and . This distinction is not always apparent and academics continue to debate the matter. For example, in s that can no longer perform basic functions such as education, security, or governance (usually due to fractious violence or to extreme poverty), organized crime, governance and war sometimes complement each other. to describe democratic countries whose political, social and economic institutions come under the control of a few families and s.}} In the , the (1970) defines organized crime as "the unlawful activities of ... a highly organized, disciplined association ...". Criminal activity as a structured process is referred to as . In the UK, police estimate that organized crime involves up to 38,000 people operating in 6,000 various groups. Due to the escalating violence of , a report issued by the characterizes the Mexican s as the "greatest organized crime threat to the United States". Models Bureaucratic/corporate operations :See also: Mafia They focus more on how the operations works, succeeds, sustains itself or avoids retribution, they are generally typified by: * A complex authority structure; * An extensive division of labor between classes within the organization; * Meritocratic (as opposed to cultural or social attributes); * Responsibilities carried out in an impersonal manner; * Extensive written rules/regulations (as opposed to cultural praxis dictating action); and, * 'Top-down' communication and rule enforcement mechanisms. However, this model of operation has some flaws: * The 'top-down' communication strategy is susceptible to interception, more so further down the hierarchy being communicated to; * Maintaining written records jeopardizes the security of the organization and relies on increased security measures; * Infiltration at lower levels in the hierarchy can jeopardize the entire organization (a ' ' effect); and, * Death, injury, incarceration or internal power struggles dramatically heighten the insecurity of operations. While bureaucratic operations emphasize business processes and strongly authoritarian hierarchies, these are based on enforcing power relationships rather than an overlying aim of protectionism, sustainability or growth. Patron-client networks :See also: Camorra They produce crime groups that operate as smaller units within the overall network, and as such tend towards valuing significant others, familiarity of social and economic environments, or tradition. These networks are usually composed of: * Hierarchies based on 'naturally' forming family, social and cultural traditions; * 'Tight-knit' focus of activity/ ; * Fraternal or nepotistic value systems; * Personalized activity; including family rivalries, territorial disputes, recruitment and training of family members, etc.; * Entrenched belief systems, reliance of tradition (including religion, family values, cultural expectations, class politics, gender roles, etc.); and, * Communication and rule enforcement mechanisms dependent on organizational structure, social etiquette, history of criminal involvement, and collective decision-making. Youth and street gangs An estimate on youth street gangs nationwide provided by Hannigan, et al., marked an increase of 35% between 2002 and 2010. this may develop through recruiting strategies, social learning processes in the corrective system experienced by youth, family or peer involvement in crime, and the coercive actions of criminal authority figures. The term “street gang” is commonly used interchangeably with “youth gang,” referring to neighborhood or street-based youth groups that meet “gang” criteria. Miller (1992) defines a street gang as “a self-formed association of peers, united by mutual interests, with identifiable leadership and internal organization, who act collectively or as individuals to achieve specific purposes, including the conduct of illegal activity and control of a particular territory, facility, or enterprise." Some reasons youth join gangs include to feel accepted, attain status, and increase their self-esteem. A sense of unity brings together many of the youth gangs that lack the family aspect at home. "Zones of transition" are deteriorating neighborhoods with shifting populations. In such areas, conflict between groups, fighting, "turf wars", and theft promote solidarity and cohesion. Cohen (1955): working class teenagers joined gangs due to frustration of inability to achieve status and goals of the middle class; Cloward and Ohlin (1960): blocked opportunity, but unequal distribution of opportunities lead to creating different types of gangs (that is, some focused on robbery and property theft, some on fighting and conflict and some were retreatists focusing on drug taking); Spergel (1966) was one of the first criminologists to focus on evidence-based practice rather than intuition into gang life and culture. Participation in gang-related events during adolescence perpetuate a pattern of maltreatment on their own children years later. Klein (1971) like Spergel studied the effects on members of social workers’ interventions. More interventions actually lead to greater gang participation and solidarity and bonds between members. Downes and Rock (1988) on Parker’s analysis: strain theory applies, labeling theory (from experience with police and courts), control theory (involvement in trouble from early childhood and the eventual decision that the costs outweigh the benefits) and conflict theories. No ethnic group is more disposed to gang involvement than another, rather it is the status of being marginalized, alienated or rejected that makes some groups more vulnerable to gang formation, and this would also be accounted for in the effect of social exclusion, especially in terms of recruitment and retention. These may also be defined by age (typically youth) or peer group influences, and the permanence or consistency of their criminal activity. These groups also form their own symbolic identity or public representation which are recognizable by the community at large (include colors, symbols, patches, flags and tattoos). Research has focused on whether the gangs have formal structures, clear hierarchies and leadership in comparison with adult groups, and whether they are rational in pursuit of their goals, though positions on structures, hierarchies and defined roles are conflicting. Some studied street gangs involved in drug dealing - finding that their structure and behavior had a degree of organizational rationality. Members saw themselves as organized criminals; gangs were formal-rational organizations, Strong organizational structures, well defined roles and rules that guided members’ behavior. Also a specified and regular means of income (i.e., drugs). Padilla (1992) agreed with the two above. However some have found these to be loose rather than well-defined and lacking persistent focus, there was relatively low cohesion, few shared goals and little organizational structure. Shared norms, value and loyalties were low, structures "chaotic", little role differentiation or clear distribution of labor. Similarly, the use of violence does not conform to the principles behind protection rackets, political intimidation and drug trafficking activities employed by those adult groups. with some already in contact with such syndicates and through this we see a greater propensity for imitation. Gangs and traditional criminal organizations cannot be universally linked (Decker, 1998), however there are clear benefits to both the adult and youth organization through their association. In terms of structure, no single crime group is archetypal, though in most cases there are well-defined patterns of vertical integration (where criminal groups attempt to control the supply and demand), as is the case in arms, sex and drug trafficking. Twentieth century gangsters}} ’s Cosa Nostra model studied Mafia families exclusively and this limits his broader findings. Structures are formal and rational with allocated tasks, limits on entrance, and influence the rules established for organizational maintenance and sustainability. In this context there is a difference between organized and professional crime; there is well-defined hierarchy of roles for leaders and members, underlying rules and specific goals that determine their behavior, and these are formed as a social system, one that was rationally designed to maximize profits and to provide forbidden goods. Criminal entrepreneurs are the patrons and they exchange information with their clients in order to obtain their support. Clients include members of gangs, local and national politicians, government officials and people engaged in legitimate business. People in the network may not directly be part of the core criminal organization. Furthering the approach of both Cressey and Albini, Ianni and Ianni studied Italian-American crime syndicates in New York and other cities. Kinship is seen as the basis of organized crime rather than the structures Cressey had identified; this includes fictive godparental and affinitive ties as well as those based on blood relations, and it is the impersonal actions, not the status or affiliations of their members, that define the group. Rules of conduct and behavioral aspects of power and networks and roles include the following: * family operates as a social unit, with social and business functions merged; * leadership positions down to middle management are kinship based; * the higher the position, the closer the kinship relationship; * group assigns leadership positions to a central group of family members, including fictive godparental relationship reinforcement; * the leadership group are assigned to legal or illegal enterprises, but not both; and, * transfer of money, from legal and illegal business, and back to illegal business is by individuals, not companies. Strong family ties are derived from the traditions of southern Italy, where family rather than the church or state is the basis of social order and morality. The "disorganized crime" and choice theses For example, Seattle's crime network in the 1970s and 80s consisted of groups of businessmen, politicians and of law enforcement officers. They all had links to a national network via , who was powerful, but there was no evidence that Lansky or anyone else exercised centralized control over them. While some crime involved well-known criminal hierarchies in the city, criminal activity was not subject to central management by these hierarchies nor by other controlling groups, nor were activities limited to a finite number of objectives. The networks of criminals involved with the crimes did not exhibit organizational cohesion. Too much emphasis had been placed on the Mafia as controlling OC. The Mafia were certainly powerful but they "were part of a heterogeneous underworld, a network characterized by complex webs of relationships." OC groups were violent and aimed at making money but because of the lack of structure and fragmentation of objectives, they were "disorganized". Further studies showed neither bureaucracy nor kinship groups are the primary structure of organized crime, rather they were in partnerships or a series of joint business ventures. Despite these conclusions, all researchers observed a degree of managerial activities among the groups they studied. All observed networks and a degree of persistence, and there may be utility in focusing on the identification of organizing roles of people and events rather than the group's structure. There may be three main approaches to understand the organizations in terms of their roles as social systems: * organizations as rational systems: Highly formalized structures in terms of bureaucracy’s and hierarchy, with formal systems of rules regarding authority and highly specific goals; * organizations as natural systems: Participants may regard the organization as an end in itself, not merely a means to some other end. Promoting group values to maintain solidarity is high on the agenda. They do not rely on . Their perversity and violence in respect of relationships is often remarkable, but they are characterized by their focus on the connections between their members, their associates and their victims; and, * organizations open systems: High levels of interdependence between themselves and the environment in which they operate. There is no one way in which they are organized or how they operate. They are adaptable and change to meet the demands of their changing environments and circumstances. Organized crime groups may be a combination of all three. Typical activities Organized crime often victimizes businesses through *extortion or theft and fraud activities like hijacking cargo trucks, robbing goods, committing bankruptcy fraud (also known as "bust-out"), insurance fraud or stock fraud (inside trading). Organized crime groups also victimize individuals by * (either for dismantling at "chop shops" or for export), , , burglary, jewelry and gems theft and heists, , , credit card fraud, , , , and (" " scam). Some organized crime groups defraud national, state, or local governments by * public projects, counterfeiting money, smuggling or manufacturing untaxed alcohol (bootlegging) or cigarettes (buttlegging), and providing immigrant workers to avoid taxes. *Organized crime groups seek out corrupt public officials in executive, law enforcement, and judicial roles so that their activities can avoid, or at least receive early warnings about, investigation and prosecution. Activities of organized crime include *loansharking of money at very high interest rates, , , s, and , s, , of intellectual property, , , , , , , oil smuggling, , , , , , , , , , , , , illegal dumping of toxic waste, illegal trading of nuclear materials, military equipment smuggling, nuclear weapons smuggling, , providing illegal immigration and cheap labor, people smuggling, trading in endangered species, and . Organized crime groups also do a range of business and labor racketeering activities, such as * casinos, insider trading, setting up monopolies in industries such as garbage collecting, construction and cement pouring, bid rigging, getting "no-show" and "no-work" jobs, and bullying. Violence Assault The commission of violent crime may form part of a criminal organization's 'tools' used to achieve criminogenic goals (for example, its threatening, authoritative, coercive, terror-inducing, or rebellious role), due to psychosocial factors (cultural conflict, aggression, rebellion against authority, access to illicit substances, counter-cultural dynamic), or may, in and of itself, be crime rationally chosen by individual criminals and the groups they form. s are used for measures, to "rough up" debtors, competition or recruits, in the commission of , in connection to other property offenses, and as an expression of counter-cultural authority; violence is normalized within criminal organizations (in direct opposition to mainstream society) and the locations they control. Whilst the intensity of violence is dependent on the types of crime the organization is involved in (as well as their organizational structure or cultural tradition) aggressive acts range on a spectrum from low-grade physical assaults to murder. Bodily harm and grievous bodily harm, within the context of organized crime, must be understood as indicators of intense social and cultural conflict, motivations contrary to the security of the public, and other psychosocial factors. Murder has evolved from the honor and vengeance killings of the or which placed large physical and symbolic importance on the act of murder, its purposes and consequences, to a much less discriminate form of expressing power, enforcing criminal authority, achieving retribution or eliminating competition. The role of the has been generally consistent throughout the history of organized crime, whether that be due to the efficiency or expediency of hiring a professional assassin or the need to distance oneself from the commission of murderous acts (making it harder to prove liability). This may include the assassination of notable figures (public, private or criminal), once again dependent on authority, retribution or competition. Revenge killings, armed robberies, violent disputes over controlled territories and offenses against members of the public must also be considered when looking at the dynamic between different criminal organizations and their (at times) conflicting needs. Terrorism In addition to what is considered traditional organized crime involving direct crimes of fraud swindles, scams, racketeering and other (RICO) predicate acts motivated for the accumulation of monetary gain, there is also non-traditional organized crime which is engaged in for political or ideological gain or acceptance. Such crime groups are often labelled . There is no universally agreed, legally binding, criminal law . Common definitions of terrorism refer only to those violent acts which are intended to create fear (terror), are perpetrated for a religious, political or ideological goal, deliberately target or disregard the safety of s (e.g., or ), and are committed by non-government agencies. Some definitions also include acts of violence and war, especially (see the ), Allied authorities deeming the , its paramilitary and police organizations, and numerous associations subsidiary to the Nazi Party "criminal organizations". The use of similar tactics by criminal organizations for s or to enforce a is usually not labeled terrorism though these same actions may be labeled terrorism when done by a politically motivated group. Notable groups include , , , , , , , , , , , , , , and . . Other * * * * * * Financial crime Organized crime groups generate large amounts of money by activities such as drug trafficking, arms smuggling and financial crime. This is of little use to them unless they can disguise it and convert it into funds that are available for investment into legitimate enterprise. The methods they use for converting its ‘dirty’ money into ‘clean’ assets encourages corruption. Organized crime groups need to hide the money’s illegal origin. It allows for the expansion of OC groups, as the ‘laundry’ or ‘wash cycle’ operates to cover the money trail and convert proceeds of crime into usable assets. Money laundering is bad for international and domestic trade, banking reputations and for effective governments and rule of law. Accurate figures for the amounts of criminal proceeds laundered are almost impossible to calculate, and the (FATF), an intergovernmental body set up to combat money laundering, has stated that "overall it is absolutely impossible to produce a reliable estimate of the amount of money laundered and therefore the FATF does not publish any figures in this regard". However, in the US estimated figures of money laundering have been put at between $200 – $600 billion per year throughout the 1990s (US Congress Office 1995; Robinson 1996), and in 2002 this was estimated between $500 billion to $1 trillion per year (UN 2002). This would make organized crime the third largest business in world after foreign exchange and oil (Robinson 1996). The rapid growth of money laundering is due to: * the scale of organized crime precluding it from being a cash business - groups have little option but to convert its proceeds into legitimate funds and do so by investment, by developing legitimate businesses and purchasing property; * globalization of communications and commerce - technology has made rapid transfer of funds across international borders much easier, with groups continuously changing techniques to avoid investigation; and, * a lack of effective financial regulation in parts of the global economy. Money laundering is a three-stage process: * Placement: (also called immersion) groups ‘smurf’ small amounts at a time to avoid suspicion; physical disposal of money by moving crime funds into the legitimate financial system; may involve bank complicity, mixing licit and illicit funds, cash purchases and smuggling currency to safe havens. * Layering: disguises the trail to foil pursuit. Also called ‘heavy soaping’. It involves creating false paper trails, converting cash into assets by cash purchases. * Integration: (also called ‘spin dry): Making it into clean taxable income by real-estate transactions, sham loans, foreign bank complicity and false import and export transactions. Means of money laundering: * s, black money markets purchasing goods, gambling, increasing the complexity of the money trail. * Underground banking (flying money), involves clandestine ‘bankers’ around the world. * It often involves otherwise legitimate banks and professionals. The policy aim in this area is to make the financial markets transparent, and minimize the circulation of criminal money and its cost upon legitimate markets. Counterfeiting In 2007, the OECD reported the scope of counterfeit products to include food, pharmaceuticals, pesticides, electrical components, tobacco and even household cleaning products in addition to the usual films, music, literature, games and other electrical appliances, software and fashion. A number of qualitative changes in the trade of counterfeit products: * a large increase in fake goods which are dangerous to health and safety; * most products repossessed by authorities are now household items rather than luxury goods; * a growing number of technological products; and, * production is now operated on an industrial scale. Tax evasion The economic effects of organized crime have been approached from a number of both theoretical and empirical positions, however the nature of such activity allows for misrepresentation. The level of taxation taken by a nation-state, rates of unemployment, mean household incomes and level of satisfaction with government and other economic factors all contribute to the likelihood of criminals to participate in tax evasion. As most organized crime is perpetrated in the liminal state between legitimate and illegitimate markets, these economic factors must adjusted to ensure the optimal amount of taxation without promoting the practice of tax evasion. As with any other crime, technological advancements have made the commission of tax evasion easier, faster and more globalized. The ability for organized criminals to operate fraudulent financial accounts, utilize illicit accounts, access s or s, and operating goods smuggling syndicates to evade importation taxes help ensure financial sustainability, security from law enforcement, general anonymity and the continuation of their operations. Cybercrime Internet fraud Identity theft is a form of or cheating of another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name. Victims of identity theft (those whose identity has been assumed by the identity thief) can suffer adverse consequences if held accountable for the perpetrator's actions, as can organizations and individuals who are defrauded by the identity thief, and to that extent are also victims. Internet fraud refers to the actual use of services to present fraudulent solicitations to prospective victims, to conduct fraudulent transactions, or to transmit the proceeds of fraud to financial institutions or to others connected with the scheme. In the context of organized crime, both may serve as means through which other criminal activity may be successfully perpetrated or as the primary goal themselves. , , s, , and other scams are the most common and most widely used forms of identity theft, though with the advent of social networking fake websites, accounts and other fraudulent or deceitful activity has become commonplace. Copyright infringement Copyright infringement is the unauthorized or prohibited use of works under , infringing the copyright holder's s, such as the right to reproduce or perform the copyrighted work, or to make s. Whilst almost universally considered under , the impact and intent of organized criminal operations in this area of crime has been the subject of much debate. Article 61 of the (TRIPs) requires that signatory countries establish procedures and penalties in cases of willful trademark counterfeiting or copyright piracy on a commercial scale. More recently copyright holders have demanded that states provide criminal sanctions for all types of copyright infringement. Organized criminal groups capitalize on consumer complicity, advancements in security and anonymity technology, emerging markets and new methods of product transmission, and the consistent nature of these provides a stable financial basis for other areas of organized crime. Cyberwarfare Cyberwarfare refers to politically motivated to conduct and . It is a form of sometimes seen as analogous to although this analogy is for both its accuracy and its political motivation. It has been defined as activities by a nation-state to penetrate another nation's computers or networks with the intention of causing civil damage or disruption. Moreover, it acts as the "fifth domain of warfare," and , U.S. Deputy , states that "as a doctrinal matter, has formally recognized cyberspace as a new domain in warfare . . . which has become just as critical to military operations as land, sea, air, and space." Cyber is the practice of obtaining confidential, sensitive, proprietary or classified information from individuals, competitors, groups, or governments using illegal exploitation methods on internet, networks, software and/or computers. There is also a clear military, political, or economic motivation. Unsecured information may be intercepted and modified, making possible internationally. The recently established is currently debating whether such activities as commercial espionage or theft of intellectual property are criminal activities or actual "breaches of national security." Furthermore, military activities that use computers and s for coordination are at risk of equipment disruption. Orders and communications can be intercepted or replaced. Power, water, fuel, communications, and transportation infrastructure all may be vulnerable to . According to Clarke, the civilian realm is also at risk, noting that the security breaches have already gone beyond stolen credit card numbers, and that potential targets can also include the electric power grid, trains, or the stock market. Computer viruses The term "computer virus" may be used as an overarching phrase to include all types of true viruses, , including s, s, most s, , dishonest and other malicious and unwanted software (though all are technically unique), and proves to be quite financially lucrative for criminal organizations, offering greater opportunities for and whilst increasing security, secrecy and anonymity. Worms may be utilized by organized crime groups to exploit security (duplicating itself automatically across other computers a given network), while a Trojan horse is a program that appears harmless but hides malicious functions (such as retrieval of stored confidential data, corruption of information, or interception of transmissions). Worms and Trojan horses, like viruses, may harm a computer system's data or performance. Applying the Internet model of organized crime, the proliferation of computer viruses and other malicious software promotes a sense of detachment between the perpetrator (whether that be the criminal organization or another individual) and the victim; this may help to explain vast increases in cyber-crime such as these for the purpose of ideological crime or terrorism. In mid July 2010, security experts discovered a malicious software program that had infiltrated factory computers and had spread to plants around the world. It is considered "the first attack on critical industrial infrastructure that sits at the foundation of modern economies," notes the New York Times. White-collar crime and corruption Corporate crime Corporate crime refers to crimes committed either by a (i.e., a having a separate legal personality from the s that manage its activities), or by individuals that may be identified with a corporation or other business entity (see and ). Note that some forms of corporate corruption may not actually be criminal if they are not specifically illegal under a given system of laws. For example, some jurisdictions allow . Labor racketeering Labor racketeering has developed since the 1930s, affecting national and international construction, mining, energy production and transportation sectors immensely. Activity has focused on the importation of cheap or , involvement with union and public officials ( ), and . Political corruption Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of power for other purposes, such as of political opponents and general , is not considered political corruption. Neither are illegal acts by private persons or corporations not directly involved with the government. An illegal act by an officeholder constitutes political corruption only if the act is directly related to their official duties. Forms of corruption vary, but include , , , , , , and . While corruption may facilitate criminal enterprise such as , , and , it is not restricted to these activities. The activities that constitute illegal corruption differ depending on the country or jurisdiction. For instance, certain political funding practices that are legal in one place may be illegal in another. In some cases, government officials have broad or poorly defined powers, which make it difficult to distinguish between legal and illegal actions. Worldwide, bribery alone is estimated to involve over 1 trillion US dollars annually. A state of unrestrained political corruption is known as a , literally meaning "rule by thieves". Drug trafficking s and their areas of influence}} Heroin: Source countries / production: three major regions known as the (Burma, Laos, Thailand), (Afghanistan) and Central and South America. There are suggestions that due to the continuing decline in opium production in South East Asia, traffickers may begin to look to Afghanistan as a source of heroin." Human trafficking Sex trafficking for the purpose of sexual exploitation is a major cause of contemporary sexual slavery and is primarily for prostituting and ren into . Sexual slavery encompasses most, if not all, forms of forced prostitution. The terms " " or "enforced prostitution" appear in international and humanitarian conventions but have been insufficiently understood and inconsistently applied. "Forced prostitution" generally refers to conditions of control over a person who is coerced by another to engage in sexual activity. Official numbers of individuals in sexual slavery worldwide vary. In 2001 estimated 400,000, the estimated 700,000 and estimated 1.75 million. The most common destinations for victims of human trafficking are , , , , the , , , and the , according to a report by . Illegal immigration and people smuggling See , People smuggling is defined as "the facilitation, transportation, attempted transportation or illegal entry of a person or persons across an international border, in violation of one or more countries laws, either clandestinely or through deception, such as the use of fraudulent documents". The term is understood as and often used interchangeably with migrant smuggling, which is defined by the as "...the procurement, in order to obtain, directly or indirectly, a financial or other material benefit, of the illegal entry of a person into a state party of which the person is not a national". This practice has increased over the past few decades and today now accounts for a significant portion of illegal immigration in countries around the world. People smuggling generally takes place with the consent of the person or persons being smuggled, and common reasons for individuals seeking to be smuggled include employment and economic opportunity, personal and/or familial betterment, and escape from persecution or conflict. Contemporary slavery and forced labor The number of today remains as high as 12 million to 27 million. This is probably the smallest proportion of slaves to the rest of the world's population in history. Most are , largely in , who are under incurred by , sometimes even for generations. It is the fastest growing criminal industry and is predicted to eventually outgrow . By nation * * * * * * * * * * * * * * * * * * * * * * * * * * * * References Category:Organized crime